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9.
Company Analysis <ul><li>Combined revenue of $18 Billion . </li></ul><ul><li>Earnings per share grew 13% </li></ul><ul><li>Net revenue growth of 12% (three times industry growth) </li></ul><ul><li>Retained profits of $6.9 Billion </li></ul><ul><li>“ To be the worlds premiere consumer product company focused on convenient foods and beverages. we seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do we strive for honesty fairness and integrity&quot; </li></ul><ul><li>- Source: Pepsi. Co. 2007 annual report. </li></ul>OLIDIX CONSULTANTS

10.
<ul><li>For our primary market research to be of use to our competitive analysis, we had various questions we needed answering and therefore split our survey into three parts. </li></ul><ul><li>Branding... </li></ul><ul><li>Promotion / Advertising </li></ul><ul><li>Taste test </li></ul>OLIDIX CONSULTANTS 3. Market Research

15.
SWOT Analysis <ul><li>Strengths: Large market share, purchasing economies of scale, customer loyalty, world wide brand recognition, huge distribution network </li></ul><ul><li>Weaknesses: Smaller market share than main rival Coca-cola, inability to substantially product differentiate, hard to compete with Coca-Cola’s strong brand identity and customer loyalty. </li></ul><ul><li>Opportunities: Adapting to market trends (Pepsi health drink) could create an advantage, opportunity to be known as a socially responsible producer however this incurs costs which may not be met with the current economic climate, </li></ul><ul><li>Threats: High levels of competition from main rival. Pepsi will lose market share if other companies adapt to market trends faster. </li></ul>OLIDIX CONSULTANTS

16.
Porter’s Strategy <ul><li>“ While strategy may be about competing and surviving as a firm, it is products, not corporations that compete, and products are developed by business units”. (Porter, 1980) </li></ul><ul><li>Business Unit Level Strategy: </li></ul><ul><li>Porters Two Strategies </li></ul><ul><li>Cost-Leadership </li></ul><ul><li>Product-Differentiation </li></ul>OLIDIX CONSULTANTS

18.
6. Recommendations <ul><li>We believe that there are two main areas that The Pepsi Cola Company could improve on in order to maintain a competitive advantage over its rivals. </li></ul><ul><li>Adopting a Cost-Leadership Strategy </li></ul><ul><li>New Product Development </li></ul>OLIDIX CONSULTANTS

20.
New Product Development <ul><li>Produce a range of ‘healthy’ alternatives under the brand name ‘Pepsi Fresh’. </li></ul><ul><li>Our suggestion would be a range of Vitamin enriched waters under the name ‘Pepsi Fresh’. </li></ul>OLIDIX CONSULTANTS